Stocks Gain, Little New Gleaned From June FOMC Minutes

Wide range for rates Wednesday, 30Y Bonds extended session lows ahead midday after blowing past early overnight highs after the NY open. Rates reacted to positive (non-recessionary) data, as 30YY fell below 3.0% briefly to 2.9926% low and have climbed steadily ever since to 3.1223% high.

• Underlying rate futures started to sell-off prior to final June services PMI (52.7 (FLSH 51.6; MAY 53.4), accelerated the sell-off after ISM June services composite Index came in stronger than expected as it only dipped to 55.3 (cons 54.0) from 55.9, contrary to the large miss in last week's manufacturing index, building on the upward revision seen in the final PMI just earlier.
• Little initial reaction to to June FOMC minutes release: "Participants judged that an increase of 50 or 75 basis points would likely be appropriate at the next meeting," the minutes said.
• Some see as potential for pause by year end helped stocks bounce: “Participants noted that, with the federal funds rate expected to be near or above estimates of its longer-run level later this year, the Committee would then be well positioned to determine the appropriate pace of further policy firming and the extent to which economic developments warranted policy adjustments.”